The Indian aviation sector is going through a period of great strain due to the Gulf War, which further destabilises the already precarious financial health of local carriers. The Federation of Indian Airlines (FIA) thus alerted the Ministry of Civil Aviation last Monday to a real risk of several airlines ceasing operations due to the soaring price of aviation fuel (ATF).
In a letter addressed to the government, the FIA states that the sector is subject to a “Extreme pressureand that the situation has become critical, with some companies finding themselves on the verge of ceasing their activities. The sector's critical situation has been exacerbated by the war in the Middle East and the exorbitant increase in the price of aviation fuel. , the letter specifies.
In fact, the price of aviation fuel now represents nearly 40 % of airline operating costs. Furthermore, carriers must contend with airspace restrictions, forcing them to use longer air corridors. Not to mention the Restrictions imposed by the UAE on the number of daily flights to Dubai or Abu DhabiLimited to one daily rotation, this restriction primarily affects Indian airlines, which have significant traffic on the UAE/India route.
Added to this are aircraft idled by engine and supply chain issues, a shortage of pilots, and the depreciation of the rupee, which increases leasing and maintenance costs.
Swift government reaction, but is it enough?
Faced with this situation, the FIA, which includes Air India, IndiGo and SpiceJet among others, is therefore calling on the government to review the kerosene pricing mechanism. It is also calling for a temporary suspension of certain taxes on fuel and for the implementation of emergency financial support to avoid network cutbacks and flight cancellations. Without swift intervention, the airlines estimate that both domestic and international operations are becoming "unviable and unsustainable," particularly on long-haul routes.
Le gouvernement indien a de fait réagi, annonçant des premières mesures. Le ministre de l’Aviation civile, Ram Mohan Naidu, a ainsi dévoilé mercredi 29 avril une série d’allègements, incluant une réduction de 25 % des redevances d’atterrissage et de stationnement, ainsi qu’un plafonnement de la hausse du kérosène à 25 % de son prix moyen. D’autres mesures pourraient suivre si la situation reste tendue.
